What is a CKYC Number? Everything You Need to Know About Central KYC, Benefits, Documents & Online Process

Central Know Your Customer (CKYC) is a central system of KYC started by the Indian government for the purpose of enhancing verification of identity from all financial institutions. With the implementation of CKYC, there is no need for a person to submit all KYC-related documents to every banking financial company, bank, mutual fund or insurance firm. Once the verification is done, a person gets a unique CKYC number and the tedious process of verifying the identity becomes a walk in the park.

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is responsible for the maintenance of the CKYC registry.

What is CKYC (Central Know Your Customer)?

Central Know Your Customer (CKYC) is a KYC registration system that provides a centralized database for customer information. Once an individual is verified, a CKYC Identification Number (KIN) is allocated.

The CKYC number can be utilized by,

Banks
Non-Banking Financial Companies (NBFCs)
Mutual Fund Companies
Insurance Companies
Other financial firms

This way, one does not have to keep repeating the KYC every time he approaches a new institution.

Who’s Responsible For the CKYC Registry?

The CKYC registry is employed by the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI).

The CKYC registry safely keeps clients’ KYC documents and provides access to authorized financial organizations that can then verify clients’ details whenever needed.

Main Features of the CKYC

The Central KYC system provides a lot of advantages for both clients and financial institutions,

One-time KYC registration for numerous financial services
Unique 14-digit CKYC Identifier number (KIN)
Central and secure database of clients
Process of verification without papers
Speedier process of registration in banking/ investment sphere
Less duplication of KYC documents
More securitization and transparency.

What is the significance of a CKYC Number?

A CKYC number eliminates the necessity of resubmitting KYC documents every time a transaction is made.

The key advantages of CKYC are mentioned below,

Registration for KYC only once for all financial institutions
Faster account opening and loan approval
Easier investing in mutual funds and insurance
Lesser paperwork and documentation
Increased accuracy of customer data
More transparency and adherence to laws
More security of customer data

Documents Required for CKYC Registration

In order to conduct the CKYC process, the required documents are,

Aadhaar Card
PAN Card
Passport or Driving License
Utility Bill or Rental Agreement
Recent Passport-sized Photograph

However, financial companies may require other documents as per the rules.

How to Register for CKYC

There are few steps that you need to follow to get your CKYC number.

Step 1

Go to any bank, insurance company, NBFC or mutual fund house or any of the authorized financial institution. Many institutions now also give CKYC registration online.

Step 2

Submit the relevant KYC documents, such as a proof of identity and proof of address and PAN.

Step 3

Complete the identity verification by using biometric or OTP verification, if required.

Step 4

The financial institution verifies your submitted documents and uploads your information to CKYC registry of CERSAI.

Step 5

On successful verification, you will get your CKYC Identification Number (KIN).